CHARLOTTE & RALEIGH, NC – Duke Energy says it will buy Progress Energy in a stock deal worth about $26 billion, resulting in a combined utility with 7.1 million customers, largest in the United States.
The merged firms will operate under the Duke name, headquartered in Charlotte while keeping “substantial operations” in Raleigh.
Bill Johnson, CEO of Progress Energy will take the helm as CEO of the merged companies. Duke CEO Jim Rogers will chair the merged firms.
Johnson called the combination of the two utilities “A perfect fit.”
While the merger may result in some job losses, according to reports, it could also result in lower utility rates.
The merger gives the combined utility increased financial clout.
The combined company will have:
• Approximately $65 billion in enterprise value and $37 billion in market capitalization
• The country’s largest regulated customer base, providing service to approximately 7.1 million electric customers in six regulated service territories North Carolina, South Carolina, Florida,Indiana, Kentucky and Ohio
• Approximately 57 gigawatts of domestic generating capacity from a diversified mix of coal, nuclear, natural gas, oil and renewable resources
• The largest regulated nuclear fleet in the country.
“This combination of two outstanding companies is a natural fit,” said Johnson, chairman, president and chief executive officer of Progress Energy. “It makes clear strategic sense and creates exceptional value for our shareholders. Together, we can leverage our best practices to achieve even higher levels of safety, operational excellence and customer satisfaction, and save money for customers by combining our fuel purchasing power and the dispatch of our generating plants.”